KL palm oil hit at close

KL palm oil hit at close

KUALA LUMPUR (Reuters): Long liquidation hit Malaysian palm
oil futures at the close on Wednesday after players lost hope of
positive news emerging in the near term.

Traders said India's Prime Minister Atal Behari Vajpayee was
unlikely during his visit to Kuala Lumpur next week to grant a
request by Malaysia to cut palm oil import duty to 45 percent to
make it at par with soyoil.

"Hopes that the Indian Prime Minister's visit will bring
positive news to the market have gone. India seems to be very
determined to restrict imports," one trader said.

"I am sure this long liquidation will continue tomorrow," he
added.

At the close, benchmark third-month July futures was down five
ringgit at 770 ringgit ($202.63) a ton. Volume was 1,364 lots.

In the physical sector, May crude palm oil (CPO) for southern
and central regions was offered at 745 ringgit a ton against bids
of 740. Deals were reported at 745 for south and at 740 for
central.

June CPO for the southern and central regions was offered at
765 ringgit a ton, against bids of 757.50 and trade at 760 for
both regions.